margaret why not. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines tune in to conjure reports on our. looking a lot of pictures straight from egypt thousands defiantly remain on top or a square for a seventh day of protests egypt's military rulers say that they're sorry for the deaths of almost forty demonstrators held in the worst clashes since five years old public anger shows no sign of decreasing. arab foreign ministers are also in cairo but it's syria and not egypt that's on their agenda as they threaten damascus with further sanctions meanwhile france proposes to establish so-called humanitarian corridors in syria to get aid to areas under attack from state forces

a strong echo of the pretext under which the no fly zone was established over libya . plus russia stresses it's not going to stop the reset of ties with the u.s. but will halt its nuclear disarmament and deploy rockets on its borders if washington establishes its missile shield in europe moscow is seeking a written legal guarantees that the shield will not be directed against it the washington refuses to put its herbal assurances in writing. next artie's kaiser report this time next kaiser and his co-host stacey herbert discussed taxpayers in the what's being pepper sprayed with toxic toxic debts don't go away. max kaiser this is the kaiser report is this image of pepper spray and this you know like the way things are going on this spray some of the people space station

harbor tell us more max of course you're referring to the police pepper spraying students at u.c. davis the occupiers there universe in california davis and the headlines on this newspaper police suspended over pepper spray attacks that shocked us i thought it was a good parallel to what's going on in the global economy that we have these unelected officials imposed upon us and pepper spraying us with equally as they describe it here pepper spray is a toxic red liquid and said we have a toxic debts sprayed upon us and yet nobody is being fired or suspended over this yeah you're supposed to stay out of the red if you're running an economy you're not supposed to spray redness or debt into the economy as we see happening down the eurozone with these elected bankers who go by the code name technocrat but that's

just code for banks turner and they go in there with their aerosol of debt and they sprayed into these economies and of course it destabilizes these economies even more and it requires more austerity measures and it requires a confiscation not only of wealth but of civil rights let's see how this pepper spray of debt works and you might want to pepper spray me now while on reading it just to see if i am able to tolerate the pain tax. cuts tax payers to carry their risks for private mortgages. if you can see through the haze of pepper spray the taxpayer is to become the ultimate guarantor for hundreds of millions of pounds of mortgages as part of a radical strategy to boost britain's ailing housing industry so by taking some of the risk of lending the government hopes to bring down deposits of up to twenty

percent for first time buyers it was little spot percent and to kickstart demand for homes look if the tax prayer is the backstop and the guarantor maybe the taxpayer should elect somebody to run the country that has their interests at heart and not the interest of the people who are putting together these false agglomerations of illegal debt and i'm saying if they're going to be the backstop and they're guaranteeing the debt then shouldn't they have somebody in office who's who's there for their interest how can they allow for so and be parachuted in from a bank or to serve the bankers interest to set it up so that when the bankers fail then the taxpayer the citizen has to be the backstop he's also helping developers out so housing developments the article says will also be able to bid for up to four hundred million pounds of government subsidies to start work building on land which the developers already own but consider currently economical to develop

isn't this what a market is max price discovery mechanism all that stuff right well the way to cure the housing problem in the u.k. is to let the market determine where the price should be that would stimulate demand so by cameron coming in and gifting developers with huge cash gifts to go out there and manipulate the market is only going to a make a developer's rich in an unhealthy way that we saw in ireland look at all the developers in ireland who walked away with billions of euros because they were crooked and corrupt same thing with the house developers in the u.k. they are pretty much across the board can. the corrupt so the camera is just going to give them a free gift just like the banks they won't actually use it to build housing in a sustainable way they'll use it to pay themselves huge bonuses and walk away and then five years from now cameron will be in the exact same position he was if you look at look what they have done with the rail system every five years the transportation system needs a bailout they give it to private contractors who steal the money five years later

nothing's better and they give them another gift so now they're they're using the same ridiculous methodology that's bankrupt the country and they're going to apply it from the transportation industry and then to try to ground the housing industry because it'll work so well in transportation and are going to try to housing and completely and systemically and institutionally totally corrupt the five that part of the economy corrupt the fires that are up the side. well but it also you know how democracy can work as a tyranny against everybody else because in the u.k. especially if you only need something like twenty three percent of the vote the popular vote and you've come prime minister here he's helping out a select group of people who could even come up with a five percent because the average house prices in the u.k. are still two hundred thirty two thousand pounds which is like you could buy beverly hills for that absolutely they think the problem is not with the prices them some as it would relate to a free market capitalist system they perceive the problem to be that the additional

layers of an enormous ponzi scheme is missing that the government will supply because the private sector is to grow to provide that next layer of a ponzi scheme this will result in further market those location to house prices will never find a point of equilibrium that would be equivalent to a free market system and cameron clearly is pandering to his constituency it is trying to stay in office because everything else he touches turns to a complete joke he's got the reverse midas touch well listen to what another article on this. same story first time buyers could get government backed ninety five percent mortgages so listen to his arguments out goes free market capitalism the market should determine what the price is and listen to the airy fairy middle class or lovie class sort of targeted language it's not just about the economy

it's also about people's hopes and dreams you will always remember that moment if you've done it when you get back here and you walk into your first flat it's a magic moment it's a moment i want everyone in this country to have not just better off people the dream of home ownership is something that should be achievable for everyone if you click that speech and you put it word for word and match up against what jim jones told the folks in the shirley before they drank the kool-aid it reads note for note exactly the same we're talking about cult leaders leading a homeownership cult over the abyss into financial suicide let me explain something to you for a second capitalism without bankruptcy is like christianity without hell i mean you've got to accept the total package if you're going to be a free marketeer you've got to accept the people go bankrupt that's the way you weed out the weaklings or go to call yourself copper list and go on the perpetual david cameron merry go round of free giveaways for the club to kratz all austerity

measure for everybody else but we're supposed to feel good because somebody has got to speak of they stole from jim jones down there in vienna ok he announces this plan just as this headline breaks property asking prices cut by most in four years how sellers have cut their asking prices by the largest amount for four years as the relentless flow of bad economic news damages confidence according to the latest figures from right move that's the way you clear an inventory you drop the price and then people can afford it because. except the new market price the new reality camera now about that for a turn of phrase down there at the dispatch box in the house of commons reality i know it's a freaky term that they didn't teach you at eton but maybe you should read up on it it's cold reality and you obviously don't live anywhere near that neighborhood you live in cuckoo land where you can stimulate the economy it's free gift housing

developers who are known just awesome no financial products what are you out of your mind well average asking prices have dropped by seven thousand five hundred twenty eight pounds or three point one percent from the previous month so that's a better way to help people get on the so-called housing ladder rather then take from from body else he's having to take from somebody else in the economy and as we covered when we were in london he cut it from the poor and disabled so some paraplegic right now is being thrown out in the street so somebody who might vote who can vote is i'm going to vote for david cameron instead right your point is well taken he's moving assets from one part of the economy subsidize the housing industry which he has identified as key to growth in britain why because of that stupid cockamamie speech you just read me that is like playing the violins in the background about every fricken middle class idiotic british person wants to have

a home is their castle and on the government i'm going to make it happen it's like george bush retread remember his speech the ownership society you're ten years too late that ship has sailed you can't just replay old george w. bush beaches and expect people to applaud as if you're saying something a original be truthful see sane and then remaining minutes we have here max i want to turn to this little bit of the audio to show the nature of the people who are bailing out who are all suffering for and this is eric townsend he's an american investor. living in hong kong and he's talking to financial sense news hour about in accounts that he had a commodities account where they started liquidating his account even though he was perfectly hedged and they sort of liquidating is account due to an obscure rule they say that was in his contract it really makes me wonder you know designed to protect them in some way because every action they took increased risk to me and

increased risk to them or isn't intended so that the customers account can blow up according to a complex set of rules that the customer can't possibly inform themselves you know what is the point of all this why does it work this way yeah like i've been saying i mean the way the industry is not regulated is a lot of dead bodies are floating to the surface whether it's the m.f. global scandal or other related scandals that this scandal the fact is that these brokerage and bankers there are simply taking money directly out of people's accounts as the global economy continues to suffer from the deal leveraging that's happening as a result of all the fraud to begin with and i think anyone who has money in any of these institutions be prepared to lose it well he's lost two hundred thousand dollars and he says he's never going back into a commodities brokerage again and he did ask why hasn't john core sign been arrested what is he doing walking around a free man so i want to turn to the spinal headline here max we keep on turning to

where all the power is going and it's heading east china applies five finger death touch to another business fraudster so former president chen chang food of china mobile telecom was sentenced to death on charges of taking bribes of over thirty six million remember which is a around six million dollars and then max on november seventeenth his son was sentenced to ten years in prison for taking bribes of two million dollars and this is the killer of sentence here in this case the son was sentenced for using his father's connections to support getting. new contracts for companies he was then paid dividends by the companies so just by using his own father's connections and you think of david cameron's entire cabinet and all that they have behind him they have no work experience no credibility no intelligence or know how all they have is that they were part of the lucky sperm club if they were complying with china's

standard of moral rectitude they would also all be five finger death. so you have to ask yourself why would you rather have your money and david cameron's jews shack vaporizing out the window because he's a nincompoop or china where people actually kill the malcontents. there were thanks so much for being on the kaiser report thank you go a much more coming away so stay right there. will be. there in more mouths to feed but where will the food come from can science provide the answers to the future of food under the microscope. we've got the future covered. shoes that so much you know there's a huge decision. for the new tensions and once with many of the hopes of the heart

of the egyptian revolution is mubarak's military establishment including dream. journey the length of life. the desire for the best the thing. that drowns out. the story of one man who returns whom after years of alienation. monks. want to keep. moving.

like a back of the castle report on max kaiser time now to go to portland oregon and speak with gregory mcdonald of gregor dot you asked gregory is now also running for chris martin says is lighter gregor mcdonald welcome back to the kaiser report thanks so much for having me max good to see you all right dr laura was a war crimes and political crazies in the many have missed that oil was back up

over one hundred dollars how is all at one hundred dollars a barrel when we are in the midst of a great global deflation. in the near term i think we may have just seen oil prices make their last hurrah for the great reflection or period that started in two thousand and nine and clearly is probably finishing up now in two thousand and eleven even though i think that won't prices will probably we can from here i do think. whatever level they go down to will probably be much higher than what we saw in the two thousand and nine financial crisis you know we've had no growth in crude oil supply for the sixth year now and really the way the world has has coped with that is play taking more and more demand out of the developed nations of europe in the united states so that asia with its growth in demand could actually have some so you know we were flat max for the last six years all right so

a couple of points first of all i guess that is the definition of peak oil and number two what i mean it's moved over to asia and what it what capacity how does that work exactly what the supply is no zero sum game. one hundred percent of the growth in asian to me has been composed of simply frame the oil consumption from here in the west i mean for example if we look at petroleum consumption in the united states around peaks of two thousand and five two thousand and six at the top of the housing bubble when we were building lots of houses and people were buying pickup trucks and light vehicles oil demand here in the united states is down almost thirteen percent in that period and we're not recovering our demand we removed a lot of discretionary demand obviously we had a lot of wasteful discretionary nancy that to move out and of course as our economy feels to recover maybe we're about to remove another tranche of them and here in

the united states not dragger i see a lot of activity in the u.s. with this fracking. this they go into the geological crust and they and their crack it open and they release natural gas and it is this a meaningful amount of new supply to the energy mix overall it is a meaningful contribution to new supply and many of us have watched the growth of new title oil from places like voc and formation in north dakota for a couple of years now what's been a little bit comical however is to see the press in both london and new york talk about this new supply not in net terms however because the united states has seen an uptick in overall production of about eight to ten percent from its recent lows in two thousand and eight but that hasn't changed coble so thought a good global supply of oil so you know i think it's wonderful for the smaller

independent oil and gas companies of the united states that production has come back so on shore they'll certainly see higher production and higher profits but that doesn't mean that the united states on a net basis is going to go through a significant supply growth period over the next decade say out to two thousand and twenty now here's a straight up or down economics question for you what's tripper for the us to develop alternative energy to continue inventing other countries like somalia yemen libya iraq sudan are supporting these countries to get oil let's taper the current fall foreign policy or develop the technological alternative sources but it's a fairly easy question i mean just look with that in context america built out its highway system after world war two one fourteen dollar oil we're now trying to run that system and repair that system and maintain that system on one hundred dollars

oil is very an economical and from an energy. standpoint it might even be an energy sink in other words the amount of resources first putting into the system may be more than the amount of the economic benefit the rashly getting back out of it and the problem is liquid energy and act that's that's the real problem racing around the world trying to secure a new liquid energy resources has become an economic loser for the united states we would be much better off investing in the power grid and plugging various sources not just solar and wind into that new power grid but also natural gas we do have a decent natural gas resources here and here in north america so you know your question's pretty easy to answer also considering the fact we don't even price in the cost of security you know the cost that we incur to maintain our global military presence which if you look at a map of global military presence were dispersed throughout the world but the main

concentration is in the middle east near a resource and so that's not a mistake right now and let's talk about japan for a second and i was just reading that warren buffet in the wake of the fukushima disaster and the more bond markets over there is going to take a little field trip from omaha the tokyo looking for bargains is a good idea of warren buffet's to go look for bargains in this area or is this the economy because it's dependency on oil and the changes and macroeconomic really not such a bargain but the fukushima disaster revealed. in is really running on what's known as a very tightly coupled energy system and tightly coupled systems tend to collapse when you break off just one little part of them and when the fukushima and other nuclear complexes went down you had tremendous strains on the rest of the chap

a nice energy system and of course japan's manufacturing a lot of its goods from. through the electrical grid and through the importation of liquefied natural gas so japan i think his benefit of a value trap for value oriented investors for two decades yes they do have productive capacity and a very high world class productive capacity from god's hand is not bringing any other advantage to the table in terms of energy inputs they're having to pay the highest prices in the world for liquefied natural gas in fact i was just looking at liquefied natural gas prices for japan they're between fifteen and seventeen dollars per million v.c.u. and of course what how do we price the costs. to the quality of life in japan of the fukushima disaster which is a offense that is going to ripple to image over several decades

so i think that warren buffett very nice guy how does golden age in a particular you know distinct era of global growth i think that warren has perhaps run out of ideas at this point it's not really warren's fault the world has changed we're in a phase transition with energy and i just don't think that warren's perspective is as valid as it seems right now are gregory mentioned this phrase tightly coupled with i guess another analogy to this would be that just in time the supply chain management that's part of globalization everyone's all hooked up and moving around and the transportation system and all the parts and assembly is all happening linked together very tightly coupled i guess you could say about it with japan obviously being an island and whatnot you can see how they would be exposed to this

tightly coupled economic backdrop what are some of the other countries that are similarly let's call it a risk you know let's call it tightly coupled risk as as the world the leverage is as the world as globalization i think we have people globalisation as we have hit peak oil and and peak water so what are some of the couple of the other countries that are at rest of tightly coupled disintegration rest i think the other system that of course remains. is of course the financial system within the o.e.c.d. it actions and that's principally united states europe while it's true that the united states has fairly decent energy resources if you don't count oil i mean we were pretty well. stocked with coal and with with natural gas but europe looks pretty clearly vulnerable in that regard and it's somewhat tragic or ironic and some sense because europe perhaps has done one of the better jobs over the last two

decades of becoming energy efficient in other words they have continually weaned from the demand side their consumption of oil and it continually moved towards natural gas and solar and wind but as you saw post two thousand and eight even europe took another leg down in its petroleum consumption losing another million barrels per day and so one of the boehner abilities that i see with europe is there isn't as much discretionary energy consumption to shed at this point and so any lead lower in energy consumption is going to be correlated basically one one with economic growth and of course this is a really tough spot but the developed world is in right now it is to find some way to grow to service the debt and the barriers to growth are twofold one in the

private sector remains way too high and two there just isn't an easy cheap energy resource coming along to rescue us and so you're in a very vulnerable type of threshold situation with what's occurred with debt in the developed world right so although europe has been cutting back on their consumption of oil the fact is that the oil industry out of the past twenty five years has had a reciprocal growth or raise it with the credit markets and those banks in europe are exposed to those credit markets in a big way so even though they've cut back on oil the collapse in the credit markets is pressuring the banks anyway so they went through the exercise of cutting back really they finding out there. finding out that they're just as exposed to the global credit oil cyc all regardless of whether they cut back that's correct we're sort of trapped below a scene when you know that the image of a ceiling is very very useful here every time these western economies try to get

their head of the ceiling and try to walk into some sort of industrial growth to get the credit cycle we started again and to get that service going if you know or oil rises back up again because it's concurrent with any sort of growth whether it's production growth for consumption growth as i said next i think we've just seen the turning point and that cycle or west texas intermediate crude came up very quickly in the last four weeks because it finely he was released from its landlocked status in the interior of the united states and it's making its way down to the gulf of mexico and so west texas intermediate crude is rejoining with brant which is the global grade of oil that the world that's paying the price for brant in the last year so i think you know yes the oil prices have just briefly come up

above one hundred dollars a barrel but i just don't think given the levels at which we're operating that our economies are going to be able to sustain that so i think it's probably time to see a weakening face and prices all right gregory paneled out of time thanks again for being on the kaiser report thank you max all right that's going to do it for this edition of the kaiser report with me max geyser and stacy herbert our thank my guests gregory macdonald if you want to send me an e-mail please do so at kaiser reported r t t v dot are you also follow me on twitter at kaiser report or on facebook kaiser report as well it's a nice time this is max as are saying.